
You can get into a new rental property investment for less than $20,000 if you are resident in the local market. Our target market however is West Africans residing outside the USA. Most banks offering mortgages to overseas residents will require a minimum 25% equity contribution on the value of the house. This significant equity contribution has the advantage of putting the investor on a positive cash flow from the onset of the project. For examples on a 4- bedroom, 2500 square foot home at a cost of $65 per square foot, the equity contribution will be $40,625.00. Average rental income in the area of interest for this type of home is $1,400 monthly . The mortgage at an interest rate of 5.5% will be about $695.55 monthly excluding taxes and insurance. This gives a cash flow of over $700 monthly. The rental income pays for the mortgage with some excess cash in hand. The house is also undervalued at the moment due to the state of the economy. It underscores the fact that there is no better time to come into the marker to buy investment properties.
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